How Can the Bailout Bill Help?
The core of this bill is to buy somewhere near $700 billion of troubled assets from financial institutions.The purpose of this is to help free up the banks so that they may start lending again. This of course will add to the national debt and the value of the American dollar will fall yet again. They tell us that this will help unfreeze the credit markets and get the economy working again, but then they do not explain exactly how this will work. It's a gamble and whats more is that they are gambling with your tax dollars.Over time we as taxpayers will pay the majority of this bill because it will invest in assets with underlying values.
One of the major things with the bill is that they are going to raise the insurance on the FDIC from $100,000.00 to $250,000.00. Also included in this package is a little something for everyone, and that is an energy tax break for individuals and businesses which will include a deduction for the purchase of solar panels. It may allow us to deduct state and local taxes on our federal returns.
If you are wondering who voted for the bill, here you go. Forty Democrats and 33 Republicans voted yes with one Independent from Connecticut voting yes as well. Nine Democrats and 15 Republicans voted no along with one independent from Vermont who also voted no.
The realization of this is that it took many years to get us to this point and now we are scrambling for a quick fix. This is going to take much more than a quick bailout to remedy and we must have a bill that will prevent future fallouts from occurring. This would be the message that our leaders need to hear.
So does this bailout package reward the bad decisions made by Wall street? That is a question everyone will differ on. But the one thing we can all agree on is this. It is putting taxpayers at risk and is not addressing the major economic problems that we face everyday.
Published by mary snyder
I come from a family of 5, was married for 29 years, my husband passed away in 2002, I have a Fiance now, who is a wonderful man, and between us we have five wonderful grand babies, I am still young enough t... View profile
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4 Comments
Post a CommentGood article :) Sheri
interesting thansk!
I disagree. The taxpayers have always been at risk due to the borrow and spend philosophy of our government. The real risk is the collapse of the financial institutions. Hasty revisions of regulations can be disastrous. The bail out along with the actions of the Federal Reserve Board and the Treasury will give our legislature time to make the correct decisions regarding regulations.
The bail out will take the bad investments out of the banks, thus allowing them to make more loans to industry and retail operations. Without these loans to tidy up the cash flow of businesses, the stores will have layoffs, the manufactuerers will have layoffs, etc. It will effect everyone. The bail out will stall off a deep recession until Congress has the time to review the regulations and modify them to assure that the same crisis does not happen again. It is a two step procedure. We cannot allow the backbone of our economy [the financial institutions] to collapse. We cannot allow millions of people to suffer because of the mistakes of a few hundred managers. Furthermore the bail out is design to allow the government to recoup most of the bail out funds.